Did you know ? Non-recovered Value Added Tax (VAT)

Here non-Recovered value added tax means the VAT charged by Seller or any of Seller’s Affiliates to Buyer and its Affiliates, which is not refundable and deductible or creditable. The VAT on certain expenses are specifically blocked by law and cannot be recovered. Such expenses are given below;
• Entertainment expenses is accommodation food and drinks, access to shows & events or trips provided for pleasure or entertainment
• Motor vehicles means if made available for personal use.
• Employee-related expenses is goods or services for employee’s personal benefits it means except if there is a legal or contractual obligation to provide such good or service.
When to recover value added tax (VAT)?
If the VAT was not recovered in the tax period in which the above conditions have been met, it can be recovered in the following tax period. If the tax invoice was not received in the tax period when the transaction was made, the input value added tax can be recovered in the tax period in which the tax invoice is received.